Digital Transactions Surge: Nepal’s Electronic Payments Nearly Triple in Five Years

Electronic payment transactions in Nepal have witnessed a dramatic surge over the past five fiscal years, with the total value of transactions soaring from Rs 34.42 trillion in FY 2020/21 to Rs 98.43 trillion in FY 2024/25, according to statistics published by Nepal Rastra Bank (NRB).

The figures underline the country’s accelerating shift towards digital finance, boosted by mobile banking, QR-based payments, and the growing adoption of fast payment systems.

RTGS Dominates, But Mobile Banking Takes Off

The Real Time Gross Settlement (RTGS) system continues to account for the largest share of digital payments, handling Rs 74.90 trillion in FY 2024/25, more than double the volume recorded just two years earlier.

Yet, the strongest momentum has come from mobile banking, which has grown more than tenfold in five years—from Rs 460 billion in 2020/21 to Rs 5.02 trillion in 2024/25. Similarly, QR-based payments have surged nearly 50 times, climbing from just Rs 20.28 billion in 2020/21 to Rs 958.38 billion in 2024/25.

Electronic payment transactions in Nepal	Column1	Column2	Column3	Column4	Column5	Column6	Column7	Column8	Column9	Column10	Column11	Column12	Column13	Column14	Column15	Column16	Column17
Fiscal Year/Transaction (Rs Billion)	RTGS*	ATM-Cash Withdrawal	ECC	IPS	Faster Payment System $	Debit Cards	Credit Cards	Prepaid Cards**	Internet Banking	Mobile Banking	Branchless Banking	Wallet	QR-Based Payments	Point of Sales (POS)	E-Commerce***	Cross Border QR Acquiring	Total
2020/21	20552.212	648.267	8056.449	2369.108	1356.742	679.353	9.986	0.853	98.656	460.013	12.868	114.432	20.282	31.725	9.101		34420.051
2021/22	42134.018	839.732	8773.753	2060.041	3081.764	881.396	14.143	3.099	159.489	1210.134	16.19	184.293	94.508	51.435	4.84		59508.838
2022/23	34289.975	968.397	6207.166	2135.705	3937.694	1010.493	18.351	4.84	156.828	2185.999	18.049	219.807	245.412	59.045	6.182		51463.946
2023/24	38520.229	1057.847	5899.069	2435.923	3920.911	1100.398	21.733	7.542	167.837	3452.78	18.579	302.694	499.795	64.158	8.816		57478.312
2024/25	74901.756	1088.709	6289.358	2911.233	5241.704	1137.673	24.014	12.555	233.8	5018.334	19.436	506.315	958.383	71.962	13.535	2.666	98431.432

(*Other than BFIs                                                                                                                          

** Also includes card issued by PSPs                                                                                                                                                        
***Online payment using cards                                                                                                                                                        
$ Faster Payment Systems includes all the transactions from Connect IPS (Mobile/Web/Gateway), Fonepay -IBFT, InstaFund , SCT-IBFT). However, the data of Faster Payment Systems before Jun-July 2022/23 comprises only the data of Connect IPS)                                                                                                                                                        
Digital wallets also show steady growth, with transactions expanding from Rs 114 billion in FY 2020/21 to Rs 506 billion in FY 2024/25.

Mixed Trends Across Platforms

Some payment modes showed more modest increases. ATM withdrawals rose gradually from Rs 648 billion in 2020/21 to Rs 1.09 trillion in 2024/25, reflecting continued cash reliance.

Internet banking use increased from Rs 98.65 billion to Rs 233.80 billion during the same period. 

Card transactions also grew steadily: debit card transactions more than doubled to Rs 1.13 trillion, while credit card usage climbed to Rs 24 billion.

In an indication of a gradual decline in traditional banking instruments, the Electronic Cheque Clearing (ECC) totalled Rs 6.29 trillion in FY 2024/25, compared to Rs 8.05 trillion in FY 2020/21. 

Policy Push and Digital Adoption

Analysts attribute this growth to NRB’s regulatory push for digital finance, the rapid expansion of fintech services, and consumer preference for contactless transactions after the COVID-19 pandemic. The introduction of the Faster Payment System (NCHL-ConnectIPS Fonepay integration) further accelerated adoption, recording Rs 5.24 trillion worth of transactions in FY 2024/25, up from Rs 1.35 trillion five years earlier.

Meanwhile, cross-border QR acquiring, a relatively new initiative, began to show traction in FY 2024/25 with Rs 2.66 billion in transactions, signaling Nepal’s integration into regional digital payment networks.

Outlook

With electronic payments approaching the Rs 100 trillion mark, Nepal’s digital economy is gaining significant momentum. Experts suggest that sustained investments in cybersecurity, interoperability, and rural financial inclusion will be critical to maintain this growth trajectory.

“Digital transactions are no longer just an urban trend. With QR codes in tea shops to online banking in rural cooperatives, Nepal’s financial landscape is transforming,” said a senior NRB official.